It’s that time of year again, I review my portfolio performance every 6 months as a compromise between short term volatility and waiting too long between reviews. The first half of 2014 has been a bit of a roller coaster for my portfolio, driven mainly by swings in the price of my biggest holding Craven House Capital. The rest of the portfolio has been much smoother, seeing nice steady gains.
My biggest portfolio holding is Craven House Capital (AIM:CRV), which today has a 30% weighting. It is a tiny nano-cap flying beneath the radar of most investors that I have held since 0.28p up to the current 0.47p. I still think this could double from here though and it’s been a while since I went over the stock so here is an up to date look.
An update on some recent changes to the portfolio. Novus Energy (TSX:NVS) has been taken over, I have initiated a position in Clear Leisure (AIM:CLP), and have a good old rant about foreign currencies!
The Alternative Investment Market (AIM) of the London Stock Exchange (LSE) is a great place for investors to find bargains and mispriced securities. A lot of the companies have market caps too small for brokers or institutions to care about, which means small investors like us are left to competed with only each other. But it doesn’t come without its risks: stocks are illiquid with large bid/ask spreads, regulation is more relaxed than the main market and the stock prices are very volatile.
For those that aren’t aware, Craven House Capital is far and away my largest holding, and sat at 22% of my portfolio yesterday. I have no other holdings above 10% which should give you an idea of how much I like this stock.
In my previous post I spoke of how management issuing new shares at 1.25p (a premium to today’s share price) was beneficial for existing shareholders and that I expected management to drastically increase the size of the balance sheet. Well today has confirmed that assumption was correct, as they have just announced a new deal which I calculate has increased my adjusted book value from £2.6m to £3.8m, a 45% increase.
There have been some changes to my portfolio in the last couple of weeks, one position is now 30% of portfolio and others have been or are being sold.
Craven House Capital presents an almost unbelievable special situation. Selling at only 64% of its net assets, it is issuing new shares for almost 5 times the current share price, benefiting shareholders.
Disclaimer | Copyright Notice | Terms and Conditions | Privacy Policy | Contact Us
Copyright © 2019 Investing Sidekick